Attorney General James Delivers Over $13,500 Worth of Baby Formula to Brooklyn Families

NEW YORK – New York Attorney General Letitia James today secured the donation of over $13,500 worth of baby formula from baby formula supplier Paragon USA & Co., LLC (Paragon) for Brooklyn families. The donation is the result of the Office of the Attorney General’s (OAG) investigation into Paragon for price gouging during the nationwide baby formula shortage in 2022. As part of a settlement with OAG, Paragon has paid a $10,000 penalty and delivered an additional $35,000 in free baby formula that OAG has distributed to New Yorkers in need. Today’s donation is the fourth and final delivery of baby formula from Paragon and will be distributed by Mixteca, a community organization primarily serving Latino communities in Brooklyn.

“Companies should never be able to raise prices and squeeze extra profits from struggling New Yorkers during a crisis,” said Attorney General James. “At a time when families were desperately searching for baby formula, Paragon raised its prices to unconscionable levels. As a result of my office’s investigation, we have secured another delivery of free baby formula to Brooklyn families in need. I will continue to go after any company for price gouging New Yorkers.”

“At Mixteca, we are deeply grateful for this generous donation of baby formula,” said Mixteca Executive Director Lorena Kourousias. “This support ensures that families in our community have access to essential nutrition for their little ones during a time of great need. Thank you, Attorney General James, for standing with our immigrant and Indigenous families and helping us care for the youngest members of our community with dignity and love.” 

In 2022, Abbott Laboratories closed one of its baby formula manufacturing plants and recalled formula produced there, creating significant hardship for families throughout New York and the nation as formula supplies dwindled and prices rose. Abbott produces over 40 percent of the infant formula sold in the United States, and the plant it closed was responsible for approximately one fifth of total U.S. production.

New York’s price gouging laws prohibit vendors from unconscionably increasing prices on goods that are vital to consumers’ health, safety, or welfare during market disruptions such as the 2022 formula shortage. In May 2022, Attorney General James issued warnings to more than 30 retailers across the state to stop overcharging for baby formula after consumers reported unreasonably high prices.

The OAG’s investigation found that Paragon, which supplies formula to retailers in New York, generated tens of thousands of dollars in additional revenue by raising prices more than 20 percent after Abbott announced its recall. The price hikes affected thousands of units of canned or bottled formula sold primarily in New York City.

As a result of a settlement with OAG, Paragon must pay penalties and make formula donations with a combined value of $45,000. This includes a $10,000 penalty to the state that Paragon has already paid and an additional $35,000 that has been paid in the form of donated formula. Today’s donation is the fourth and final donation secured by Attorney General James as part of the settlement with Paragon. In February, Attorney General James secured the donation of over $1,500 worth of baby formula to families in Westchester, and in March, over $6,300 worth of baby formula to families in Brooklyn. Earlier in May, Attorney General James secured the donation of over $13,500 worth of formula in Rochester.

Attorney General James is a leader in the fight to protect New York consumers and guard against price gouging. Attorney General James secured the donation of over $344,000 worth of baby formula to families in the Bronx in March 2025 and 3,300 cans of baby formula worth approximately $140,000 to families in Rochester in December 2024 as part of a $750,000 settlement with formula suppliers Marine Park and Formula Depot. In October 2024, Attorney General James led a multistate coalition urging Congressional leaders to support a national ban on price gouging.

In March and April 2024, Attorney General James distributed over 9,500 cans of baby formula in Buffalo and New York City from a settlement with Walgreens for price gouging during the formula shortage. In May 2023, Attorney General James secured a $100,000 settlement with Quality King Distributors, Inc. due to unconscionable price increases for Lysol products during the early days of the COVID-19 pandemic. In April 2021, Attorney General James delivered 1.2 million eggs to food pantries throughout the state which were secured as part of an agreement with the nation’s largest egg producers for price gouging in the early months of the pandemic.

New Yorkers should report potential concerns about price gouging to the OAG by filing a complaint online or calling 800-771-7755.

This matter was handled by Assistant Attorney General Benjamin C. Fishman, under the supervision of Bureau Chief Jane M. Azia and Deputy Bureau Chief Laura J. Levine, all of the Consumer Frauds and Protection Bureau. Former Data Scientist Jasmine McAllister also assisted in this matter, under the supervision of Director of Research and Analytics Victoria Khan, Deputy Director Gautam Sisodia, and former Director Megan Thorsfeldt. The Consumer Frauds and Protection Bureau is a part of the Division for Economic Justice, which is led by Chief Deputy Attorney General Chris D’Angelo and is overseen by First Deputy Attorney General Jennifer Levy.